Shell picks Louisiana site near Baton Rouge for proposed GTL plant

Shell says it remains several years away from making a final investment decision. But selecting a site allows Shell to begin engineering studies and the permitting process.

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By TOM FOWLER

Royal Dutch Shell has selected a site south of Baton Rouge,
Louisiana, for a potential multi-billion dollar project to
convert natural gas into liquid fuels such as diesel and
gasoline.

Louisiana will reimburse Shell for up to $112 million in
costs, including public road improvements, land acquisition and
infrastructure, should the company invest more than $12.5
billion in the project, according to a statement
from the company and the state.

The state's transportation department is already planning $32
million in road improvements to serve the site.

Shell proposed the Louisiana project last year to take advantage
of vast natural gas reserves unlocked by the successful
combination of hydraulic fracturing and horizontal
drilling.

If built, the project would be similar to Shell's Pearl
gas-to-liquids (GTL) project in Qatar, which can produce
about 260,000 bpd of liquid fuels.

Shell said it is still several years away from making a
final investment decision on the project. But selecting a site allows
the company to begin engineering studies and the permitting
process, according to Jorge Santos Silva, executive vice
president of Shell.

Dow Jones Newswires

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Peter: It should be convenient if it is possible to know how was’ or how is now happening? the cash flow of Qatar project in terms of internal rate of return IRR or net present value NPV. And also, what is the mass relationship between gas feeding to liquids yield and output?. And also know what shall be the products prices to pay the Qatar or new project indeed??, obviously to compete with other conventional market products

BillRose09.26.2013

Peter, Hope all is well? Do you know what insulation material where use in Qatar plant? Thanks Bill

Library Shell Global Solutions09.25.2013

Is our On Shore UA business big enough to sopport two of these projects at the same time?